Title: European Stock Futures Higher; ECB Minutes Loom Large
Jul 07, 2022 02:05AM ET
European stock markets are expected to open higher on Thursday, building on the gains of the previous session, as investors await the release of the minutes of the latest European Central Bank meeting.
At 02:05 AM ET, DAX futures in Germany were trading 1% higher; CAC 40 futures in France climbed 1.1%; and FTSE 100 futures in the U.K. rose 1.2%.
Equity investors this week have been trying to put the brutal selloff of the first half of the year behind them, while nervously eyeing central bank actions to gauge the impact of aggressive rate hikes on global growth.
The DAX was up nearly 200 points, or 1.6%, on Wednesday, while the FTSE 100 was up 1.2% and the CAC 40 was up 2%.
On Wednesday, the minutes of the Federal Reserve's June meeting were released, outlining the Fed's firm intention to control prices, which is why interest rates were raised by 0.75 percentage points.
According to the minutes, participants thought a 50 or 75 basis-point hike would be appropriate at the meeting later this month.
The European Central Bank will also release the minutes of its latest meeting on Thursday, when policymakers decided that a 50 basis point rate hike in July would be appropriate.
Inflation in Europe is at record levels, and rising energy prices suggest that upward pressure on consumer prices will continue for some time. However, economic data points to a rapid slowdown in economic growth in the region. The latest example is German industrial production, which grew by only 0.2% in May after rising by 1.3% in the previous month.